Futures contracts look a little bleak

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Trading volumes in key categories on the Sydney Futures Exchange
fell in October, compared with the same month in 2003, with
turnover in Australian dollar, SPI 200 and interest-rate futures
contracts all taking a fall.

But trading volumes in each of those categories for the year to
date were higher than those recorded in the first 10 months of
2003. Sixty-one per cent more currency futures contracts went
through the international derivatives market and there was a 6.1
per cent increase in SPI 200 futures contracts bought and sold.

In interest rates, there was a 20.5 per cent increase in volumes
for bank bill and bond futures, while the options market for
interest rates clocked up a 12.4 per cent increase for the 10
months when compared with the previous year.

Turnover in futures in many individual stocks also dropped off,
October on October, and have fallen almost 38 per cent for the year
to date. That compares unfavourably with the Australian Stock
Exchange's announcement that, on a monthly basis, more options
contracts went through in October than ever before.

Turnover in commodities futures on the SFE was also lower for
the month, as well as for the year to date; and, on the overall
market, month-on-month volumes were down 12.7 per cent, although
they were 18 per cent higher for the year so far.

In its most recent financial report, released in August, SFE
Corporation reported a $26.9 million net profit for the six months
to June 30, up 46 per cent on the previous corresponding period, as
trading volumes rose 21 per cent.

Shares in SFE Corporation, which operates the Sydney Futures
Exchange, fell 17 ¢ to $8.20 yesterday. But the stock was
coming off record highs and a year ago could be bought for less
than $5 apiece. ASX stock finished 22 ¢ up at $18.90, a record
closing high but slightly off its intraday high of $18.99.